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SYNERGY INSTITUTE OF TECHNOLOGY (BBSR)

2014
Satya Prakash
B.Tech 7th semester
8/8/2014
PROJECT ON ADI GODREJ
SUBMITTED TO: Ms Akankasha K. Jhingan
Name SATYA PRAKASH
Roll No 11EEE05
Reg No 1101335060

SYNERGY I NSTI TUTE OF
TECHNOLOGY (BBSR)

PROJ ECT ON ADI GODREJ

Name SATYA PRAKASH
Roll No 11EEE05
Reg No 1101335060
Submitted to Ms Akankasha K. Jhingan


Adi Godrej Biography
INTRODUCTION
Adi Godrej was born on 3 April, 1942 in Mumbai. He is an
Indian industrialist and the present Chairman of the
Godrej Group, which includes many Indian companies. He
is also the Chairman of 2 international companies; Keyline
Brands, U.K and Rapidol, South Africa; as well as the
Chairman of the Board of Trustees of the Dadabhai
Naoroji Memorial Prize Fund.

FAMILY
Adi Godrej hails from a business family. His father was Mr
Burjorji Godrej who was a successful businessman and his
mother was Mrs Jai Godrej who spent her life as a teacher at
one of the Godrej schools.
He is married to Parmeshwar Godrej and the couple has 2
daughters and a Son.
His eldest daughter, Tanya, is the Executive Director and
President, (Marketing) of the Godrej Industries Ltd. His second
daughter, Nisa Godrej has joined the group after completing her
studies from the Harvard Business School, USA.

His son, Pirojsha Godrej finished his management studies from
abroad and has now joined Godrej Properties.
GROWING UP

At the age of 17, Adi Godrej left India and got enrolled at the
Massachusetts Institute of Technology (MIT) in the United
States. Initially, he planned to study mechanical engineering
but ended up studying management. He received his
Bachelors and Masters degrees in management from the
Sloan School, MIT in 1963.

THE BEGINNING/CAREER

After completing his graduation, Adi Godrej returned to India
and joined the family business The Godrej Group. The
management had high expectations from him as he was the
first business graduate to join the company.

The Godrej Group was started more than a century ago and
since then it manufactured locks and vegetable based soaps
which displaced many foreign brands.

The Godrej Group continued to function with an inflexible

style of management which it followed under the controlled
era of British rule, even after India's independence. Hence
when Adi Godrej joined the group, he faced the challenge of
modernizing the management structures and making them
more flexible and systematic.
Adi started the group's movement away from family
hegemony that inflicted many family businesses of that time
in India.
Adi instilled new business processes at a time when
companies perceived change to be disruptive and
threatening.
He created an emotional connect of both his personal and the
group's brand image with people by maintaining traditional
middle class core values have remained middle class.
Under his leadership, the Godrej Group kept overhauling
growth targets and reached great heights of success.
Under Adi Godrej's leadership, the group is also involved in
philanthropic activities. Godrej is major supporter of the
World Wildlife Fund in India, it has developed a green
business campus in the Vikhroli township of Mumbai, which
includes a 150-acre (0.61 km
2
) mangrove forest and a school
for the children of company employees. He is the chairman of
the Indian School of Business since April 2011. He was elected
as the president of Confederation of Indian Industry (CII) for

the year 2012-13. In April 2013 Godrej was awarded the
Entrepreneur of the Year Award at The Asian Awards. He was
awarded the Padma Bhushan, India's third highest civilian
award, in 2013. He was awarded the prestigious Ernst &
Young Entrepreneur of the Year Award in February 2013

VENTURES

Usually, JVs have been successful. They are very clear that
JVs are short-term arrangements and almost never long-term
ones, whether it is globally or in India. Both the foreign and
Indian partner may need it strategically or tactically for
certain purposes and once that is served, one moves on.

They acquired the GE Appliances shareholding (in the early
2000s) because GE did not want to be in a business where
they were not among the top two. At that time, they were
number one in India in consumer appliances, but they (GE)
defined Asia as their market geography. Our JV with Procter
and Gamble (P&G) was in the soap business, but P&G
decided in the 1990s that soaps was not an area of focus for
them. The winding up was amicably sorted out.

Their JV with Pillsbury Ltd was for marketing wheat flour,
which wasnt our area of focus. They requested us to
restructure the JV, which we did. Similarly, Sara Lee was
getting out of the household business and personal care
products segments globally to concentrate on food products.

They saw this as an opportunity to buy out their shareholding.
They did and merged it with Godrej Consumer Products Ltd
(GCPL). And they have benefited from that move.

The Godrej group didnt have a very auspicious beginning.
Ardeshir Burjorji Godrej started off as a lawyer in Zanzibar
but wasnt too successful; he returned to India in 1894 and
became a pharmacy assistant. The following year, with a
loan of Rs 3,000 from his fathers friend, he set out to make
surgical equipment but that business was stillborn when
Ardeshir insisted on putting a Made in India stamp on the
scalpels and forceps he made. Finally, in 1897, after reading a
newspaper article on rising crime in the city, he set about
making locks from a 20-sq m room at Parel in central
Bombay. That took off and Godrej Brothers, as Ardeshir and
his brother Pirojsha named their venture, was in business.
(Incidentally, the Godrej logo is based on Pirojshas
signature.)

ABG agrees the JVs have all ended after some years but says
JVs are meant to be medium-term arrangements, in India and
outside. Besides, he adds, We partnered with some of the
greatest companies in the world. We were insiders and learnt
a lot from these companies, in HR practices, marketing and
logistics.



FUTURE PROJECT

If we look at the older family-owned groups, they are one of
the fastest-growing. Over 500 million consumers use their
products every day. Thats more than any other group in India.
If we talk in terms of financial
leverage, They have been and will continue to be conservative.


Not surprisingly, the consumer goods business will account
for the bulk of the growth. There are still only three branded
packaged consumer goods categories that are fully
penetrated in India soaps, detergents and matchsticks. So,
increasing penetration of other categories will mean
tremendous growth,

They feel Godrej Properties will be the fastest growing part of
their business we have already been growing by 50-100
per cent. Thats because unlike our other businesses, they do
not have to be concerned about competition, market share

or size in properties, as no company even has a 5 per cent
market share. GCPL is growing fast, but there is a limitation.
It cant suddenly double its sales as there is huge competition.
It has to sacrifice a lot of its profit if it wants to grow
rapidly. There is no such problem with Godrej Properties.

He says that they are in too many businesses already. They
have good growth opportunity in the existing business, so they
will stick
to them. They started a
BPO business but got out of it. Same with foods business. So
they want to stick to businesses where they are doing
extremely well and invest more in those businesses.

SWOT ANALYSIS OF THE COMPANY

Strengths
Cost advantage
Asset leverage
Effective communication
Online growth
Loyal customers
Market share leadership
Strong management team
Strong brand equity

Strong financial position
Supply chain
Pricing
Reputation management
Weaknesses
Lack of capital invrestent r &d
Lack of innovation
Lack of Mnc culture
Hierarchial structure
Opportunities
Acquisitions
Asset leverage
Emerging markets and expansion abroad
Online
Product and services expansion
Takeovers

Threats
Competition
Cheaper technology
Economic slowdown
External changes (government, politics,
taxes, etc)
Exchange rate fluctuations

Lower cost competitors or imports
Maturing categories, products, or services
Price wars
Product substitution


CONCLUSION




From the above project I conclude that Adi Godrej hails
from a business family and under his leadership, the
Godrej Group kept overhauling growth targets and
reached great heights of success.






Name: Satya Prakash
Roll no: 11EEE05
Reg. no: 1101335060